Ask a Local Attorney. 100% Anonymous. Free Answers.

You need to set up an estimated tax quarterly payment program. Basically you need to estimate your annual income to report on Schedule C and estimate both your income tax and social security taxes for the year.

In the alternative, you can use the prior year tax safe harbor in making estimated tax payments. For example if your total tax liability for 2010 for $7,000, in most cases, your withholding and estimates need to equal that amount. So if you expect your withholding for 2011 to be $1,000, then you need your estimated taxes to total $6,000, with $1,500 is to be paid on April 15, June 15, September 15 and January 15.

Note, that if your income is above a certain amount in 2010 you may have to pay in 110 percent of prior year tax. For more information, look at the Form 2210 instructions as they give you some guidelines on making these computations.

Ask a Local Attorney

Disclaimer: The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or should be formed by use of the site. The attorney listings on the site are paid attorney advertisements. Your access of/to and use of this site is subject to additional Supplemental Terms.